International Finance II (Economic Crisis)

Understand objectives and effects of key policies related to economic crises from both theoretical and empirical perspectives. Economic crises can be classified to (1) currency crisis or BOP crisis, (2) sovereign debt crisis, and (3) financial crisis. Students are expected to become familiar with issues that are common, as well as specific to, each type of economic crises. The first two types can be called as macroeconomic crisis, but recently many countries have experienced financial and macroeconomic crises at the same time. Therefore, students are also expected to recognize structural issues on (4) finance-macro linkages in crises. Lastly, this course will cover recent policy discussions developed since the global financial crisis of 2008.

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授業計画

This course will be organized as in the following outline (subject to some changes). Each topic will be based on a few academic papers. I. Macroeconomic Crisis 1. Currency and BOP Crisis a. 1st generation models b. 2nd generation models c. 3rd generation models and beyond d. Sudden stops and external sector adjustment e. Macroeconomic stabilization programs 2. Sovereign Debt Crisis a. Debt overhang problem b. Strategic default c. Moral hazard and international sanctions II. Financial Crisis 3. Banking and Market Crisis a. Bank run and deposit insurance b. TBTF and bank regulation c. Financial market run d. International aspects of financial sector policies 4. Finance-Macro Linkages a. Credit booms and busts b. Fiscal costs of financial crisis c. Twin or triple crisis

授業の方法

Lecture (discussions encouraged)

成績評価方法

Class participation and exams

教科書

No textbook

参考書

Claessens, Stijn, M. Ayhan Kose, Luc Laeven, and Fabian Valencia ed., 2014, Financial Crisis: Causes, Consequences, and Policy Response, International Monetary Fund (Washington, D.C.)

履修上の注意

Basic understanding of micro and macroeconomics as well as statistical methods / econometrics are necessary. A prerequisite is Macroeconomics for Public Policy (or its equivalent). Strongly recommended to have taken or to take International Financial Policy.